How Far Left Will Europe Lean?

Business fears Europe's new leaders will derail reform

It was hardly the debut that business had hoped for. On Oct. 11, the leftist coalition of German Chancellor-elect Gerhard Schroder announced a tax plan so tepid as to be ineffectual. Although personal and corporate tax rates will technically fall, the drop will phase in over three agonizing years. Meanwhile, the plan closes so many business tax loopholes that companies are likely to come out losers.

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